Are you interested in effective ways to improve your bad debt? Do you strive for a healthy bottom-line?
An efficient business model in today’s evolving telecom industry must account for revenue, expenses and the cost to acquire customers. In the past, most telecom companies operated on a good-faith system with their customers. With market expansions and an explosion of new products and services, it is critical to mitigate your risk and shut-down bad debt before it occurs. Many companies need assistance defining best practices to control collections, early termination fees, and unreturned service equipment. For some, uncollectible accounts can add up to tens of thousands or even hundreds of thousands of dollars annually. But with foresight, well-trained employees, and strong policies and procedures, companies can slash the amount of bad debt they struggle to collect or are forced to write off each year.
JSI recently held a free, informational webinar, Mitigating Bad Debt: A Path to Success, on solutions your company should consider, as well as a service from JSI designed to help you easily implement strong policies and procedures. This webinar talked about the importance of:
- The customer’s financial lifecycle
- Customer service agreements & contracts
- Credit checks
- Deposit processes
- Treatment & collection guidelines
- Company deployed CPE return and recovery policies
An ironclad debt collection plan is critical for your embedded customer base, but is especially vital for ILECs, CLECs, video and wireless providers who plan to branch out into new territories and lines of business. Don’t jeopardize your company’s future growth by not planning ahead to protect your investments.
To request a free recording of the webinar, contact Brenda Cordwell at 301-459-7590. For more information about best practices for lowering outstanding debt, contact Valerie Wimer at 301-459-7590.
Ten Questions Every Company Should Ask Itself about Bad Debt
Unsure of your company’s bad debt practices? These 10 questions about your company’s current policies/procedures will help uncover gaps, expose your degree of vulnerability, and focus on restoring security and stability to create a solid foundation for financial success.
1. How much bad debt did your company have in 2014?
2. How much was collected? How much was written off?
3. Have you seen an increase in bad debt in recent years?
4. What is your collection and notification process for unpaid balances, unreturned equipment, etc.?
5. Do you have customers sign a customer service agreement or written contract?
6. Do you run credit checks on new customers?
7. Do you collect deposits for new accounts, and if so, how much?
8. Is your deposit process documented and in parity with your state’s rules, documented in your tariffs, and outlined on your company’s website?
9. What are your policies and processes for company deployed customer premise equipment? What is your equipment recovery process for terminated or delinquent customers?
10. Does your company maintain a process and procedures manual related to running credit checks, deposit process, treatment and collection guidelines, customer service agreements and contracts, and terms and conditions?